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Gaming Guru

Steve Green
 

Travel site sued by several casinos files for bankruptcy

2 September 2009

LAS VEGAS, Nevada -- A Las Vegas company that books hotel rooms and sells vacation packages online has filed for bankruptcy reorganization in a case involving numerous Southern Nevada hotel-casinos.

TravelWorm Inc. in its Chapter 11 filing Aug. 13 in Las Vegas didn't say why it's seeking bankruptcy protection. A message for comment was left with the company Monday.

Financial difficulties, however, are evident in lawsuits pending against the company in Clark County District Court.

Several lawsuits have been filed in that court against TravelWorm and subsidiary Jetaway Today involving disputes with business partners including the Sahara hotel-casino, Emerald Suites LLC, Black Gaming's Mesquite casinos and the downtown Plaza and Las Vegas Club hotel-casinos.

Black Gaming, for instance, said in an August 2008 complaint that TravelWorm owed its Oasis hotel-casino nearly $40,000 for rooms booked through TravelWorm, the Virgin River property was owed nearly $50,000 and the CasaBlanca was owed about $44,000.

The Plaza said in the same suit it was owed more than $96,000 and the Las Vegas Club said it was owed more than $17,000.

The Black Gaming, Plaza and Las Vegas Club properties all said their executives were repeatedly assured last year by Jay Rein, identified as TravelWorm's chief executive, that they would be paid -- but the money never showed up.

And Emerald Suites, in its March 2009 lawsuit, said TravelWorm owed it more than $25,000 for rooms guests had booked for its Las Vegas properties through TravelWorm.

In its bankruptcy filing, the company didn't reveal financial details except that its assets are worth less than $50,000 and its liabilities total from $1 million to $10 million.

Unsecured creditors listed in the filing include Buffalo Bill's ($93,000), Casino Royale ($109,000), the Edgewater in Laughlin ($96,000), the Excalibur ($93,000), Fitzgeralds ($81,000), Four Queens ($79,000), Hooters ($95,000), Imperial Palace ($76,000), Palms ($86,000), Plaza ($91,000), Riviera ($71,000), Sahara ($300,000), South Point ($71,000) and the Stratosphere ($88,000).